Bank of England Base Rate – useful information

The Base Rate is the interest rate set by the Bank of England and is also known as the ‘official Bank Rate’. Continue reading to find out more about how this could affect you. 

Base Rate calculator

If there is a change to the Bank of England Base Rate, then use this calculator to understand how your monthly payments could change.

Base Rate calculator
  • 1.
    What is the Bank of England Base Rate?

    It is the interest rate set by the Bank of England and is also known as the ‘official Bank Rate’. It affects the interest rates offered by Banks, Building Societies and other financial institutions. By changing the official Bank Rate, the Bank of England seeks to influence overall borrowing in the economy.

    The Bank of England can increase or decrease the official Base Rate. The current rate can be found on the Bank of England’s website.

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  • 2.
    How will I know if my interest rate is linked to the Base Rate?

    You will have previously received a letter explaining that the way we calculate your interest rate is changing, and that it is now linked to the Base Rate.  The way your interest rate is calculated can be found in your account terms and conditions.  You may also contact customer services on 0345 606 2172 for information around your interest rate or other aspects of your account.

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  • 3.
    Why is my standard interest rate linked to the Bank of England Base rate?

    The Base Rate set by the Bank of England directly affects our costs of lending. It is therefore one of the things we consider when setting interest rates on our credit cards.

    When the Bank of England changes the Base Rate, your rate will change. It’s a simple and fair way to reflect the change in our costs.

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  • 4.
    How often can the Base Rate change?

    The Base Rate is reviewed monthly by the Bank of England, and often stays at the same level. In special circumstances it can make emergency changes at any time.

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  • 5.
    How will a change in the Bank of England Base Rate affect me?

    If the Bank of England changes the Base Rate, your Standard Interest Rate will increase or decrease in line with this change. The change to your rate will be effective from the last working day of the month in which the Bank of England announcement is made.

    Changes to your monthly payments will be effective from the statement in the month following the change in the Base Rate. Your monthly statement will always show you how much you need to pay and by when.

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  • 6.
    How will I know when the Bank of England Base Rate is changing?

    Any change in the Base Rate will be widely communicated in the media. It will also be announced at
    We will inform you when your Standard Interest Rate has changed on your statement in the month following the announcement of the Base Rate change.

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  • 7.
    Will the changes have any impact on my promotional rate balances?

    If you’re on a promotional interest rate, your rate will not change until this promotional period ends.
    The new interest rate (taking into account the Base Rate change) will then apply.

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  • 8.
    If I don’t want my account linked to the Bank of England Base Rate what are my options?

    You will need to close your account. Interest will continue to apply to your balance at the existing rate, and you’ll need to continue to make at least the minimum payment every month until the balance is completely cleared. You will not be able to carry on using your card.

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  • 9.
    I am currently on a repayment plan, will I be impacted by changes to the Bank of England Base Rate?

    Whilst on a repayment plan, your interest rate will not be impacted by changes in the Bank of England Base Rate. When you plan ends, we will review your account and we may decide to  link it to the Base Rate.

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  • 10.
    What happens if the Base Rate goes below 0%?

    Your standard interest rate will not track any movements in the Base Rate below 0%. This is detailed in your credit card terms and conditions.

    For example, if base rate is reduced from 0.25% to -0.25%, your standard interest rate will reduce by 0.25% only

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  • 11.
    Are there other reasons why my interest rate may change?

    Yes. Your interest rate is composed of a ‘Base Rate’ element and a ‘Personal Rate’ element.  We may change your Personal Rate in the future, for reasons set out in your account terms and conditions. If we need to increase it we’ll write to you at least 60 days before to tell you why. If we decrease your rate we will write to you at least seven days before to tell you.

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  • 12.
    How can I avoid increases to my personal interest rate?
    • Keeping to the conditions of your credit card or any other product you have with us (‘us’ includes Lloyds Bank and other brands within Lloyds Banking Group). For example, don’t miss payments, go over your credit limit, or make payments that bounce.
    • Keep an eye on your financial status. If we receive information about you from external credit reference agencies we may change your rate. Your credit rating may be impacted by regularly using the entire credit limit or exceeding the credit limit on your credit card, not making payments on time on any credit cards, mortgages, loans or current accounts or regularly using a credit card to make cash transactions.
    • We may increase your rate for other reasons - so even if you stick to the terms of your agreement and keep an eye on your financial status, this does not guarantee that your rate will remain the same.
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Important legal information

Lloyds Bank plc. Registered office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales No. 2065. Lloyds Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278.

We may monitor or record telephone calls to check out your instructions correctly and to help us improve the quality of our service. Calls from abroad are charged according to the telephone service provider’s published tariff. Not all Telephone Banking services are available 24 hours a day, 7 days a week. Please speak to an adviser for more information.